英国毕业论文(dissertation)写作多少字

t al., 2005; Li et al., 2009). As owners, they are involved in organisational development, as well as the alterations that take place in assets and liabilities (Yu, 2007; Pykhtin, 2005). Whilst it is firstly difficult to estimate the returns that shareholders are likely to receive on their investments, they are also exposed to financial losses on account of bankruptcy because of very low priority to shareholder claims during bankruptcy proceedings (Yu, 2007; Pykhtin, 2005). The price of shares may also increase or reduce in an unpredictable manner (Pykhtin, 2005; Cao et al., 2011). It is important to differentiate price risk from company risk, even though these factors separately or jointly influence share prices with consequent risks for investors (Pykhtin, 2005; Cao et al., 2011).The dividends that are paid out by organisations, firstly depend upon the profits earned by organisations and secondly on the dividend policies of individual organisations (Longsta&Rajan, 2008; Sun, 2008). It is possible that dividend payouts may reduce considerably or even stop when companies experience losses (Longsta&Rajan, 2008; Sun, 2008).

3.3.2. Bonds

Bonds are specific written declarations, wherein issuers unconditionally and unilaterally acknowledge and accept their obligations to pay specific amounts of money at given times in accordance with stated terms (Schnbucher, 2003; Yu, 2007). Bonds are largely issued by government bodies and companies with terms like maturity and interest being fixed in advance. Interest in the case of bonds can be variable or fixed (Schnbucher, 2003; Yu, 2007). Duffie and Zhu (2011) stated that bonds can be linked to specific indices, wherein the direct principal will be modified in accordance with the movement of particular price indices. The principal amount of the debt is paid either in one sum on the final maturity date or on specified other dates (Turnbull, 2005; Schnbucher, 2003). A bond purchaser very clearly has a claim against the bond issuer for the receipt of money in accordance with predetermined terms and conditions (Turnbull, 2005; Schnbucher, 2003).

Investing in bonds can involve specific risks, including issuer risk, interest rate risk, call risk and other risks (Li et al., 2009; Longsta&Rajan, 2008). Issuer risks can arise, when bond issuers are unable to meet their obligations on account of temporary or long term paucity of funds (Li et al., 2009; Longsta&Rajan, 2008). Various environmental developments, including political and economic occurrences in the concerned sector or the country can also influence the payment capacities of organisations (Arnaboldi&Rossignoli, 2015). The credit rating of an issuer can also alter on account of positive or negative occurrences in organisational operations and shape the market price of the bonds (Arnaboldi&Rossignoli, 2015). There is generally a relationship between the credit rating of a bond and the interest on it; the interest increases with reduction in credit rating (Arnaboldi&Rossignoli, 2015). The market risk factor with the most impact on prices of bonds constitutes alterations in interest rates in specific markets (Li et al., 2009; Longsta&Rajan, 2008). Enhancement in interest rates results in lowering of market value, whereas reduction in interest rates leads to an increase in the same. The risk also increases with enhancement in maturity of the bond (Arnaboldi&Rossignoli, 2015).

Bonds are also subject to call risks as bonds can be called by issuers before maturity (Sun, 2008; Jarrow & Yu, 2001). Such premature redemption can impact the yield of the bond and expose the bond holder to risks (Sun, 2008; Jarrow & Yu, 2001). Other risk can also be involved in investments of various types of bonds. Investors should thus carefully read the terms of individual bond issues before they engage in investments (Sun, 2008; Jarrow & Yu, 2001).

3.3.3. Funds

The primary purpose of investment funds is the acceptance of money